HOUSE BILL REPORT

HB 1337

BYRepresentatives Rayburn, Nealey, Ballard, Chandler, Grant, Meyers, Baugher, Lewis, Kremen, Braddock, Bristow, Rasmussen, Doty and Smith

Providing for the enhancement of agricultural financial and management counseling and instruction at the community colleges.

House Committe on Agriculture & Rural Development

Majority Report:  Do pass.  (13)

      Signed by Representatives Rayburn, Chair; Kremen, Vice Chair; Baugher, Brooks, Chandler, Doty, Grant, Holm, R. King, McLean, Moyer, Nealey and Rasmussen.

House Staff:Kenneth Hirst (786-7105)

AS REPORTED BY COMMITTEE ON AGRICULTURE & RURAL DEVELOPMENT

JANUARY 25, 1988

BACKGROUND:

Instruction and counseling concerning farm management are available at Big Bend, Centralia, Skagit Valley, Spokane, Walla Walla, Whatcom, and Yakima Valley Community Colleges.

The operating budget for the 1987-1989 biennium requires that the community college system expend not less than $2,793 per full time equivalent (FTE) student.  When the number of FTE students enrolled reaches the maximum that can be supported without violating this budget provision for support expenditures, the budget provision acts as an enrollment ceiling.

State law permits the boards of trustees of the various community college districts to waive tuition and fees for students for a variety of purposes.

SUMMARY:

The sum of $300,000 is appropriated to the State Board for Community College Education.  The appropriation is for a program for enhancing the financial and management counseling and instruction provided by the community colleges to owners and operators of farms.  The program must include funding to community colleges for:  four additional FTE staff positions for such coursework; travel for on-farm consultations; free workshops; and certain other specified program enhancements.  The Board may provide support for other enhancements.  Staff funding for a continuation of the Farm Business Center at Walla Walla Community College is expressly provided.

The boards of trustees of the community college districts may waive the tuition for owners or operators of farms who enroll in courses providing certain agricultural financial and management counseling and instruction.  Each of these farm owners or operators must demonstrate a financial need for the waiver and must be a resident of the state.

Appropriation:    $300,000 is appropriated to the State Board for Community College Education.

Fiscal Note:      Requested January 25, 1988.

House Committee ‑ Testified For:    Dan McConnon and Bill Looney, Big Bend Community College; Bruce Davis and Alfred Langan, Yakima Valley Community College; Bill Dicus, Walla Walla Community College; Jerry Owens, Centralia Community College; Don Smith; David Gossett; Charles Saranto; and Dick Quarnstrom.

House Committee - Testified Against:      None Presented.

House Committee - Testimony For:    (1) The enrollment cap reduces the ability of the community colleges to serve the farmers who need financial training and counseling.  The bill would allow the colleges to do a better job of providing short-term crisis counseling.  (2) Whether a farmer has or has not received financial counseling and training can mean the difference between the farmer's getting and not getting a loan.  Just the ability to present financial information in the way the financial institution prefers can make that difference.  (3) With the training, farmers can analyze their own long-term profitability and make better decisions to influence that profitability.  (4) The flexibility established by the bill for the program will allow each local district to tailor the enhancements to meet the needs of the district.  Some can enroll more farmers without additional staff; others will need staff assistance to serve the need.  (5) The farm crisis is not over.  The results of an informal poll of lenders in southeastern Washington suggests that 15% of their farmer borrowers will have difficulty getting financing this year.

House Committee - Testimony Against:      None Presented.